Top Cheap Stocks To Buy Today
Stocks, such as NAHL Group, trading at a market price below their true values are considered to be undervalued. Smart investors can make money from this discrepancy by buying these shares, because they believe the current market prices will eventually move towards their true value. If you’re looking for capital gains in your next investment, I suggest you take a look at my list of potentially undervalued stocks.
NAHL Group plc (AIM:NAH)
NAHL Group plc provides marketing services focusing on the legal services market in the United Kingdom. Established in 1993, and run by CEO J. Atkinson, the company now has 186 employees and with the market cap of GBP £67.88M, it falls under the small-cap stocks category.
NAH’s stock is now trading at -58% under its intrinsic value of £3.49, at a price of £1.48, based on its expected future cash flows. This discrepancy gives us a chance to invest in NAH at a discount. What’s even more appeal is that NAH’s PE ratio stands at around 6.5x against its its media peer level of 23.8x, suggesting that relative to its comparable company group, we can buy NAH’s stock at a cheaper price today. NAH is also robust in terms of financial health, as current assets can cover liabilities in the near term and over the long run. Finally, its debt relative to equity is 18%, which has been falling for the past few years indicating its capacity to reduce its debt obligations year on year.
Trinity Mirror plc (LSE:TNI)
Trinity Mirror plc produces and distributes content through newspapers and associated digital platforms in the United Kingdom, the Republic of Ireland, Continental Europe, and internationally. Formed in 1832, and now run by Simon Fox, the company employs 5,362 people and with the stock’s market cap sitting at GBP £209.18M, it comes under the small-cap category.
TNI’s stock is now hovering at around -78% lower than its actual worth of £3.49, at the market price of £0.78, based on its expected future cash flows. This discrepancy signals a potential opportunity to buy TNI shares at a low price. Moreover, TNI’s PE ratio is trading at 3.4x against its its media peer level of 23.8x, indicating that relative to its comparable set of companies, we can invest in TNI at a lower price. TNI is also in good financial health, with current assets covering liabilities in the near term and over the long run. The stock’s debt-to equity ratio of 5% has been diminishing over the past couple of years demonstrating TNI’s ability to reduce its debt obligations year on year.
Inmarsat Plc (LSE:ISAT)
Inmarsat plc provides mobile satellite communications services on land, at sea, and in the air worldwide. Started in 1979, and currently lead by Rupert Pearce, the company currently employs 1,900 people and with the stock’s market cap sitting at GBP £2.26B, it comes under the mid-cap stocks category.
ISAT’s stock is currently hovering at around -23% less than its actual value of $6.39, at a price of $4.95, based on my discounted cash flow model. This discrepancy gives us a chance to invest in ISAT at a discount. Furthermore, ISAT’s PE ratio stands at around 13.7x against its its diversified telecommunication services peer level of 26.3x, implying that relative to its comparable set of companies, we can invest in ISAT at a lower price. ISAT is also strong financially, with current assets covering liabilities in the near term and over the long run. The stock’s debt-to equity ratio of 192% has over time, signalling its capability
For more financially sound, undervalued companies to add to your portfolio, you can use our free platform to explore our interactive list of undervalued stocks.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
